In a
shocking development, Trump, yesterday, warned of his intention to impose
tariffs on an additional $200 billion worth of Chinese goods. This undesirable
move is likely to worsen US-China trade relations and fuel concerns of a
potential global trade war. The ongoing friction between the two nations has
clearly kept market players on edge, with global stocks sliding amid the
growing caution. With the escalating ‘tit-for-tat’ trade war seen as a major
risk to global stability, investors may offload riskier assets for safe-haven
investments.
More pain ahead
for emerging markets?
Emerging
market currencies have been treated without mercy by a broadly stronger Dollar.
The intensifying trade tensions between the United States and China simply
added to market jitters, consequently weighing heavily on emerging markets.
While the prospect of higher US interest rates is likely to stimulate fears of
capital outflows from emerging markets, global trade concerns present a major
risk. Intensifying trade tensions may trigger fears of increasing global
protectionism negatively impacting growth in developing nations – ultimately
spelling more trouble for EM currencies and stocks.
South African
Rand crumbles
The
South African Rand has tumbled to its lowest levels in over six months as
escalating trade tensions between the world’s two largest economies eroded
appetite for riskier currencies. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
An
appreciating Dollar simply compounded to the Rand’s woes with price punching
above 13.90 as of writing. It must be kept in mind that the Rand was not alone,
as other major emerging market currencies were under attack from a broadly
stronger Dollar. The Rand has scope to weaken further if the Dollar continues
to strengthen and global trade fears dent risk sentiment.
Oil slips on
eroding risk appetite
A lack
of appetite for risk amid the US-China trade dispute has resulted in Oil prices
depreciating today. Market expectations over OPEC and Russia easing supply
curbs to counterbalance falling output from Venezuela as well as production
outages from Iran have eroded appetite for the commodity. Although a hike in
production output seems to be priced in, Oil remains at risk of depreciating
further if Friday’s OPEC meeting in Vienna ends in an impasse. It must be kept
in mind that Iran, Venezuela and Iraq are expected to veto any decision made by
Saudi Arabia and Russia to raise production levels. Any disagreements or
infighting between cartel members during the talks may trigger fears over the
future of OPEC’s production cut deal.
WTI
Crude is currently bearish on the daily charts with prices breaking below
$65.00 this afternoon. Sustained weakness below this region could encourage
bears to target $64.35 and $64.00, respectively.
Commodity
spotlight – Gold
Gold
has descended into the abyss despite intensifying trade tensions rattling
financial markets and leaving investors on edge. The driver behind Gold’s
depreciation remains an appreciating US Dollar. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
With
the Dollar likely to find ample support amongst the bullish sentiment towards
the US economy and heightened expectations of higher US interest rates, Gold
could be poised for further punishment. While the argument for the precious
metal to potentially rebound may be based around trade tensions and
geopolitical uncertainty, an appreciating Dollar could continue obstructing any
upside gains.
Focusing
on the technical picture, Gold is under pressure on the weekly timeframe.
Sustained weakness below $1,280 level could be an early indication that bears
are back in the game. Previous support at this level could transform into a
dynamic resistance that opens a path towards $1,264.
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
Hmmm!!! Folks, have you ever
imagined how the financial status of your firm will be when more than 20,000
CEOs and other key decision makers of blue-chip corporations pay for your
products and services or even give you very juicy deals. The link below will
tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
No comments:
Post a Comment